Net Income in the 2018 second quarter increased 1,015% to a record of $1,396,000 ($0.49 per fully diluted common share) as compared to the 2017 second quarter net income of $125,000 ($0.05 per fully diluted common share). Annualized return on average common equity (ROE) for the 3 months ended June 30, 2018 increased to 13.1%

The increase in net income during the 2018 second quarter was primarily attributed to a $866,000, or 29%, increase in net-interest income. The increase in net-interest income was primarily due to a 33% increase in mortgage loan interest income and a 25% increase in interest income from investment securities. Net income was positively affected by a $541,000, or 16% decrease in Non-Interest Expense. The decrease in non-interest expense was primarily the result of a $251,000, or 13% decrease in compensation and employee benefits.

Revenue (defined as net-interest income and total non-interest income) in the 2018 second quarter increased to $4.6 million, or 19% when compared to the 2017 period. Pre-provision for loan losses, pre-income tax expense – net income in the 3 months ended June 30, 2018 increased to $1.8 million, or 247% when compared to the 2017 period. The Company's Net-Interest Margin increased in the 2018 second quarter to 4.55% from 4.16% in the 2017 period. The Efficiency Ratio improved to 61.2% in the 2018 period.

While the Company's effective income tax rate decreased to 19.5% in the 2018 period, Income Tax expense increased by $332,000 as compared to the 2017 period.

Balance Sheet and Capital

Total assets at June 30, 2018 increased 11% to $369.7 million when compared to June 30, 2017. The increase in total assets was primarily due a 22% increase in net loans over the twelve month period to $227.5 million. Total Liabilities increased 12% over the period. Deposits were the primary component of these increases with total deposits of $307.8 million at June 30, 2018, an increase of 8% of which $78.6 million were Non-Interest Bearing, which represents an increase of 8% from June 30, 2017.

The Company's increase in total assets were affected by a 47% decrease in Cash and Cash Equivalents to $18.1 million, an increase of 13% in Investment Securities to $102 million and a 1,151% increase in deferred tax assets to $746,000. The increase in total liabilities were affected by a $14.9 million, or 560% increase in Federal Home Loan Bank advances and a $3.1 million reduction/payoff of Subordinated Debentures/Trust Preferred Securities.

Total loans increased to $232.1 million at June 30, 2018. Of that total $206.5 million, or 89%, were secured by real estate.

REAL ESTATE SECURED LOANS

June 30, 2018

(In Thousands)

% of Total Equity

and Loan Loss

Balances

% of Total Loans

Reserves

1-4 Family

$87,195

37.57%

182.06%

Multi-Family

6,170

2.66%

12.88%

Land & Construction

49,314

21.25%

102.97%

Commercial Real Estate

Non-Owner Occupied

24,761

10.67%

51.70%

Owner Occupied

39,077

16.84%

81.59%

TOTAL REAL ESTATE

$206,517

88.99%

431.20%

NON-REAL ESTATE SECURED LOANS

Commercial & Industrial

$19,064

8.21%

39.80%

Consumer

7,488

3.23%

15.63%

TOTAL COMMERCIAL &

INDUSTRIAL & CONSUMER

$26,552

11.44%

55.44%

Less unearned income on loans

-1,005

-0.43%

-2.10%

TOTAL LOANS

$232,064

100.00%

484.54%

CONSOLIDATED LOAN AND DEPOSIT BALANCES BY MARKET

June 30, 2018

(In Thousands)

Market

Deposit Balances

Loan Balances

Tangipahoa Parish (4 offices)

$229,637

74.6%

$97,538

41.9%

St. Tammany Parish (2 offices)

36,692

11.9%

71,194

30.6%

Jefferson Parish (1 office)

41,473

13.5%

58,786

25.3%

Other

0

0.0%

5,010

2.2%

Total

$307,802

100%

$232,528

100%

Common Stockholders' Equity increased by $1.2 million, or 3% to $43.3 million for the twelve months ended June 30, 2018.

Retained Earnings increased by $3.6 million to $23.2 million for the twelve month period. Other Comprehensive Income decreased by $1.5 million, or 370% from June 30, 2017 to June 30, 2018. Tangible Book value per common share increased to $16.03 as total common shares of 2,703,944 were outstanding at June 30, 2018. Of the 2,703,944 outstanding shares; 49,883 shares are restricted common shares that represent stock awards to officers and directors of the Bank and Company which are not vested as of June 30, 2018.

At the subsidiary bank level, Tier 1 Capital increased to $ 38.5 million at June 30, 2018.

FPB FINANCIAL CORP.

CONSOLIDATED RATE & YIELD

For the Three Months Ended June 30, 2018

(In Thousands)

2018

2017

Average

Average

Average

Yield/

Yield/

Balance

Interest

Rate

Rate

Interest-Earning Assets

Loans Receivable

$229,724

$3,734

6.52%

6.56%

Mortgage-Backed Securities

18,675

107

2.30%

1.96%

Investment Securities AFS

60,435

371

2.46%

2.09%

Investment Securities HTM

5,379

39

2.91%

2.53%

Trading Assets

134

0

0.00%

0.00%

State & Municipal Securities

14,643

88

2.41%

2.10%

Federal Home Loan Bank Stock

1304

7

2.16%

0.99%

First National Bankers Bank Stock

300

0

0.00%

0.00%

Interest-earning deposits

12,998

32

0.99%

0.86%

Total Interest-Earning Assets

343,592

4,378

5.11%

4.66%

Non-Interest Earning Assets

28,157

Less Allowance for Loan Loss

-4,501

Total Assets

$367,248

Interest-Bearing Liabilities

Deposits

$225,333

$415

0.74%

0.63%

FHLB Advances

16,126

64

1.59%

2.07%

Fed Funds Purchased

0

0

0.00%

0.00%

Preferred Statutory Trust

0

0

0.00%

4.41%

Total Interest-Bearing Liabilities

241,459

479

0.80%

0.71%

Non-Interest Bearing Liabilities

83,051

Total Liabilities

324,510

Stockholders' Equity

42,738

Total Liabilities and

Stockholders' Equity

$367,248

Net Interest-Earning Assets

$102,133

Net Interest Income; Average

Interest Rate Spread

$3,899

4.31%

3.95%

Net Interest Margin

4.55%

4.16%

Average Interest-Earning Assets

to Average Interest-Bearing

Liabilities

142.30%

Items affecting and contributing to the Company's record 2018 second quarter net income when compared to the 2017 quarterly period:

Net Interest Income increased to $3.9 million from $3.0 million, or 29%

Service charges on deposits increased to $323,000 from $222,000, or 46.0%

Total non-interest expenses decreased to $2.9 million from $3.4 million, or 16.0%

Compensation and employee benefits decreased to $1.7 million from $2.0 million, or 13.0%

Provisions for Loan Losses decreased to $60,000, or 84.0%

The effective tax rate decreased to 19.5%

Other items and per share data of note as of June 30, 2018, compared to the six month period ending June 30, 2017

Net Earnings per diluted common share increased to $0.93, or 272%

Annualized Return on Average Equity increased to 12.7%

Total Revenue (Net interest income and Non-interest income) increased to $9.2 million or 20.9%

The Efficiency Ratio improved to 61.8%

Total Common Stockholders' Equity increased to $43.3 million, or 3.0%

Cash Dividends paid to common shareholders increased to $358,000 in 2018, or a 53% increase

Tangible Book Value per common share increased to $16.03

Net Loans increased to $227.5 million or 22.0%

Allowance for Loan Losses increased to $4.5 million, or 22.0%

Non-Interest Bearing Deposits total $78.6 million, an increase of 12.8%

Non-Maturity deposits increased by 10.2% to $255.5 million

Total Assets increased by 11.2% to $369.7 million

FHLB advances increased by 560.4% to $17.5 million

Asset Quality

Non-performing assets (NPA's) at June 30, 2018 decreased by $1.8 million, or 47.1% to $2.0 million when compared to June 30, 2017 and represents 0.9% of gross loans. NPA's at March 31, 2018 totaled $2.5 million. The decrease during the 12 month period ending June 30, 2018 in NPA's were attributed to an decrease of $816,000 in loans on nonaccrual, to $1.5 million; a decrease of $785,000 in Other Real Estate Owned (OREO), to $0 and a $188,000 decrease in loans 90-days past due and accruing, to $1,000. The decrease in NPA's during the 3 month period ending June 30, 2018 were attributed to a decrease of $195,000 in non-accrual loans, a decrease of $264,000 in OREO, and an $10,000 decrease in loans 90-days past due and accruing, to $1,000. The Company's allowance for loan losses (ALLL) increased by 22% to $4.5 million at June 30, 2018 when compared to June 30, 2017. The $4.5 million in the ALLL represents 2.0% of average net loans in the 2018 second quarter period and 226% of NPA's on June 30, 2018. At March 31, 2018 the Company's ALLL totaled $4.5 million or 2.0% of 2018 first quarter average net loans and 181% of NPA's at period end.

Net loan charge-offs for the 2018 second quarter totaled $6,000 (0.01% of average net loans) down from $94,000 (0.21) of net loan charge-offs in the 2017 second quarter. Net loan charge-offs were $14,000 (0.03%) in the 2018 first quarter. Troubled Debt Restructured (TDR's) through June 30, 2018 was $3.5 million, of which $967,000 are on nonaccrual. Total TDR's on June 30, 2017 and March 31, 2018 were $3.4 million and $2.7 million respectively.

FPB Financial Corp. is headquartered in Hammond, LA and is the parent company of Florida Parishes Bank. The Company's common stock is traded under the "FPBF" symbol.

This news release contains certain forward-looking statements, including statements about the financial condition, results of operations and earnings outlook for FPB Financial Corp. and its subsidiaries. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors, many of which are beyond the Company's control, could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. These factors include, among others, the following: general economic conditions, changes in interest rates, deposit flows, the cost of funds, changes in credit quality, interest rate risks associated with the Company's business and operations and the adequacy of our allowance for loan losses. Other factors include changes in our loan portfolio, changes in competition, fiscal and monetary policies and legislation and regulatory changes. We undertake no obligation to update any forward-looking statements.

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On July 12, 2018, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.075 per share will be paid on September 25, 2018 to stockholders of record at the close of business on September 10, 2018."